Graduates Unemployment- A Case of Jalgaon City

IOSR Journal of Business and Management (IOSR-JBM)
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 17, Issue 11 .Ver. II (Nov. 2015), PP 01-09
www.iosrjournals.org
DOI: 10.9790/487X-171120109 www.iosrjournals.org 1 | Page
Graduates Unemployment- A Case of Jalgaon City
Ms. Richa Modiyani1
, Mr. Rakesh Gagade2
, Ms. Rimzim Menghwani3
1
Asst. Prof- MBA Dept, SSBT’s COET, Bambhori, NMU, Jalgaon, Maharashtra, India
2,3
Student- MBA Dept, SSBT’s COET, Bambhori, NMU, Jalgaon, Maharashtra, India
Abstract: This paper provides a broad overview of the employment situation among graduates which is a major
concern of government and their social partner throughout the region. In India, a stated objective of economic
policy planning is achievement of high rates of growth of the economy and sustained improvement in the
standards of living of people. However, despite impressive economic growth over the years, the situation on
employment front leaves much to be desired. Growing integration of our economy with the global economy has
increased the susceptibility of the economy to the vagaries of global economic forces.
In analyzing the situation, it needs proper understanding of the current situation of unemployment problem
faced by the country at large and also its consequences. With an object to understand the present situation of
unemployment faced by the graduates and also to understand the various causes and consequences of the same,
this research paper is presented as a case study of students of various faculties in Jalgaon City. The
methodology used for this paper is primary data. The research has covered various problems and issues of a
social issue – graduates’ unemployment which include many aspects like health issues which affect physically as
well as psychologically on students’ life, lower economic growth, increased rate of crimes, and suicide as the
last option after facing so many problems.
Keywords: unemployment, graduates, education, government.
I. Introduction
A man has to perform many roles in his life, the most crucial of which is that of an earning member. It
is crucial not because a man spends approximately one-third of his lifetime performing this role but because it
determines both livelihood and status and also enables the individual to support his family and fulfill his social
obligation to the family and society. It also enables him to achieve power. If person, with a capacity and
potential to work, refuses to work or fails to obtain work, he not only does not gain any status in the society but
also comes to suffer from several emotional and social problems his plight affects not only himself but his
family and society too no wonder, unemployment has been described as the most significant sociological
problem in the society.
Unemployment occurs when a person who is actively searching for employment is unable to find work.
Unemployment is often used as a measure of the health of the economy. For many of us the notion of
unemployment is one of those who do not have a job or, are paid no salary. This is partly correct but not wholly.
Such a notion would apply largely to the educated people who are not able to find work or to those in urban
areas who come to seek employment. Unemployment has thus reached such an alarming situation today that is
perhaps considered the most serious of the problem affecting India and one that is steadily worsening as the gap
between the rapid rising member pressing for work and the new employment opportunities being created widen.
1.1 Features of Unemployment in India:-
For many of us the notion of unemployment is one of those who do not have a job or, are paid no
salary. This is partly correct but not wholly. Such a notion would apply largely to the educated people who are
not able to find work or to those in urban areas who come to seek employment. We will leave out a large section
of people, in fact the majority, who are engaged in agriculture and who may not be paid wages. For example, a
person cultivating a small piece of land which he owns is also employed; though he is not paid a wage. He is
more known as self-employed in agriculture. Similarly there are vast numbers of people in rural and urban area
who do not get wages for the work they do. These are farmers, artisans, petty shop owners, small and big
industrialists, taxi drivers, mechanics etc. These people are also regarded as being employed. All these people as
well as those drawing salaries are regarded as being “gainfully employed” because they get some material
rewards (in cash or kind) for the work they do. Those who are not gainfully employed are unemployed.
1.2 Forms of Unemployment:-
1. Seasonal unemployment
2. Disguised unemployment
3. Under employment
4. Urban unemployment

5. Cyclical unemployment
6. Industrial unemployment
7. Technological unemployment
1.3 Problems caused due to unemployment:-
 Unemployment and poverty goes side by side. The problem of unemployment gives rise to the problem of
poverty.
 Young people after a long time of unemployment find the wrong way to earn money.
 To get rid from the unemployment stress, they accept alcohol or drugs.
 Unemployed youths accept suicide as the last option of their life.
 Lower economic growth
 Increase rate in crimes. As the employed youth don‟t have anything to do they start doing robbery, murder
etc.
 Health issues i.e. it affects mentally as well as physically.
1.4 Causes and Consequences of Unemployment in India:-
The major cause of unemployment in India is the slow pace of development. As GDP growth rate is
still slow even after sixty five years of independence. The major causes which have been responsible for the
wide spread unemployment can be spelt out as under.
1. Rapid Population Growth
2. Limited Land
3. Seasonal Agriculture
4. Fragmentation of Land
5. Backward Method of Agriculture
6. Decline of Cottage Industries
7. Defective education
8. Lack of transport and communication
9. Inadequate Employment Planning
10. Labour law
1.5 Social consequences:-
Unemployment affects the individual, family as well as the society, or it may be said that
unemployment causes personal disorganization, family disorganization, and social disorganization.
From the point of view of personal disorganization, the unemployed person faces disillusionment and
cynicism. To have no outlet to release their depression, the young person tunes their creative energies into
wrong channels which explain the rise of the number of youthful bandits, highway robberies and bank holdups.
These anti-social activities offer a chance to the undisciplined and recalcitrant recruited from boys with a history
of earlier delinquencies but there has been an increase in the number of daring criminals with the decrease in
work opportunities. On the other hand, the plight of an earning person who loses his job is equally sad. Ex-wage
earners are more liable to physical illness, tension, suicide and crime, because the lack of working opportunities
makes it impossible for them to support their dependents. There own dependency on others is very often morally
sapping because of the humiliation that follows.
On the psychological implications of unemployment, unemployed persons have worries, pear, and
uncertainty about the future, loss of sense of purpose, anger, bitterness resentfulness, and feeling of shame, loss
of status and loss of respect. Feelings of fear and uncertainly gives men less control over their own
circumstances and fear of not being able to adjust to a new situation not knowing which direction to take many
of them resort to drug addiction and alcohol as a coping mechanism.
II. Need Of Research:-
This research will specifically investigate the incidence of unemployment among graduates of
institution of higher learning in Jalgaon and to determine what factor is responsible for or that affect
unemployment.
Creating new jobs is a crucial task and plays an important role in the economy. Drop in the financial
market hits job market and creates unemployment. India has the largest population of youth in the world with
about 66% of the population under the age of 35, so impact of declining financial market is the worst in India.
Though education level in the recent years has increased but skill development is still a crucial issue. Moreover,
poverty, limited access to skill based education, work experience are some of the major factors that lead to
unemployment and underemployment.

III. Objectives Of The Study:-
1. To find the reasons for graduate unemployment.
2. To identify security repercussions of graduate unemployment.
3. To undertake a survey regarding the situation of graduate unemployment faced by the youth these days.
4. To suggest the proposed solutions for graduate unemployment.
IV. Research Methodology:-
It is a descriptive research method collecting facts on graduates‟ unemployment incidences in Jalgaon
city. Primary data is collected through structured questionnaire. Secondary data on the other hand includes
relevant books on the topic of research, seminar write-ups, journal, magazines, newspapers, and bulletins. The
study sample constitutes 100 respondents constituting in the research area. The statistical tools used for
analyzing the data collected are percentage method, bar chart and pie chart. The data collected by the researcher
are tabulated and analyzed in such a way to make interpretations.
4.1 Scope of the Study:-
1. Students in Jalgaon city who are aspiring to get employment through jobs in various sectors of corporate.
2. To match the students‟ skills with those of students learning in IITs and IIMs.
3. It can be useful for students to enhance their soft skills-communication and how to give interviews and
know about government employment schemes as well as skill development schemes.
4. To the corporate for them to know the pity situation of students at present, what all problems they are facing
because of unemployment.
5. It will be useful for students, colleges and universities.
4.2 Limitations of the Study:-
1. The study is conducted in Jalgaon, so anything that explains unemployment outside this area will be
irrelevant and useless.
2. The respondents were limited and cannot be treated as a whole population.
3. The respondents may be biased.
4. Time was the major constraint.
5. The accuracy of indications given by the respondents may not be considered adequate.
6. Respondents were not willing to respond properly.
4.3. Hypothesis of the Study:-
1. The current educational system is not serving our societal need.
2. There is no means graduates unemployment to be eradicated.
3. The government does not address itself to the problems of graduate unemployment galore.
V. Review Of Literature:-
The Planning Commission of India has described a person as „unemployed‟ when he/she remains
without work for one day in a week. Against this, the ILO considers that person as „employed‟ who remains
with work for 15 hours (about two days) in a week (of five days). This definition may be accepted in a
developed country which provides social security to the unemployed but it cannot be accepted in a developing
country like India which has no Unemployment Insurance Scheme.
Unemployment has three elements:
 The individual should be capable of working,
 The individual should be willing to work, and
 The individual must make an effort to find work.
Educational unemployment is caused because the system of education is largely unrelated to life. In
fact, one of the University Grant Commission (UGC) Annual Report laid out clearly that the present system of
education is generating much waste and stagnation. The (education) system is irrelevant because of the stress it
lays on higher education which can be given only to a small minority, most of whom would in any case be
unemployed or unemployable once they graduate. The education is of little relevance to the needs of the nation.
The main obstacle to a radical reform of the curriculum in higher education is the university teachers.
Such changes would require teachers to constantly update their education and keep abreast of the latest
developments in their respective fields a good number of teachers remain indifferent to studies or are so bogged
down in tuitions, part-time business, and university/college politics that education has become a business rather
than a profession for them.

The focus of this review therefore is on the causes and trends and preferred solution to the problem of
unemployment. Thus the words of Karl Marx, the politicians are always around, only to pull the people down, is
being manifested in India today. The lack of effective economic planning and prudent management on the part
of our leaders has led to the alarming rate of employment.
5.1 Statistics of Maharashtra:-
• 4.5% young men in Maharashtra state are unemployed.
• Unemployment in Maharashtra is almost double that of Gujarat. As against the 2.5% urban young men
unemployed in Gujarat, 4.5% in Maharashtra are jobless.
• Surprisingly, unemployment in Maharashtra is not only higher than states, such as Uttar Pradesh and Delhi,
but is also more than the national average of 4.3%. These findings are part of a report „State of the Urban
Youth-India 2013‟ released by UN-Habitat.
• The unemployment among women is higher as compared to men in Maharashtra, Gujarat and many other
states. However, very few women in Delhi (0.9%), Uttar Pradesh (2.2%) and Madhya Pradesh (2.3%) are
unemployed.
• “Three-fourth of rural women and 5/6 of urban women are not in the labour force. Between 2004-05 and
2009-10, the proportion of young women in the labour force has slipped from 33% to 25% in rural India
and from 19% to 16% in urban India.”
• Economist Ajit Ranade says, “Unemployment figures are drawn from registration in employment
exchange, which doesn‟t give a correct picture. Besides, a large proportion of youth today are under-
employed, this means they are in jobs which pay less than they deserve as per their skills and
qualifications.”
5.2 India Unemployment Rate 1983-2015:-
Unemployment Rate in India decreased to 4.90 percent in 2013 from 5.20 percent in 2012.
Unemployment Rate in India averaged 7.32 percent from 1983 until 2013, reaching an all time high of 9.40
percent in 2009 and a record low of 4.90 percent in 2013. Unemployment Rate in India is reported by the
Ministry of Labour and Employment, India.
India Unemployment Rate
Source: - www.tradingeconomics.com : Ministry of Labour & Unemployment, India
Unemployment Rate in India decreased to 4.90 percent in 2013 from 5.20 percent in 2012.
Unemployment Rate in India averaged 7.32 percent from 1983 until 2013, reaching an all time high of 9.40
percent in 2009 and a record low of 4.90 percent in 2013. Unemployment Rate in India is reported by the
Ministry of Labour and Employment, India.
India Labour Last Previous Highest Lowest Unit
Unemployment Rate 4.90 5.20 9.40 4.90 percent
Employed Persons 29650.00 28999.00 29650.00 17491.00 Thousand
Unemployed Persons 44.79 40.17 44.79 5.10 Million
Population 1238.89 1223.58 1238.89 359.00 Million
Retirement Age Women 60.00 60.00 60.00 60.00

India Labour Last Previous Highest Lowest Unit
Retirement Age Men 60.00 60.00 60.00 60.00
Labor Force Participation
Rate
52.50 50.90 52.90 50.90 percent
Wages 4.83 5.07 5.47 3.12 INR/Day
Wages In Manufacturing 6.25 6.55 6.97 3.92 INR/Day
Youth Unemployment Rate 12.90 18.10 18.10 12.90 percent
Source: http://www.tradingeconomics.com/india/indicators
5.3 Policies for Promoting Youth Employment in India
(a) National Employment Service or Employment Exchanges
(b) Role of Employers' Organization and Trade Unions
(c) Role of Legislation
(d) Vocational Guidance and Education
(e) Apprenticeship Scheme
(f) Training of Craftsmen
(g) Prime Minister's Scheme for Unemployed Urban Youth
(h) Training of Rural Youth for Self-Employment (TRYSEM)
VI. Analysis & Interpretation
Fig No. 1: Gender and Graduation
Fig No. 2: Years of unemployment

Fig No. 3: Job opportunities from college
Fig No. 4: Main obstacle in finding job
Fig No. 5: Registration of name at Government employment office & Call from Government employment
office

Fig No. 6: Graduates’ meeting special needs of the organization & Securing job opportunities
Fig No.7: Relationship between Maharashtra govt. and unemployed graduate & Role played by the
government
Fig No. 8: Account for creation of job to unemployed graduates & Loans received from Government

VII. Findings:
1. 34% of respondents have been unemployed for 6 months, 28% of respondents have been unemployed for 6
months- 1 year, 24% respondents for 1-2 years and 14% for above 2 years as students don‟t have job
opportunities as well as improper quality education.
2. Majority of the respondents agree on the point that colleges do not provide any job opportunities.
3. 43% of respondents say that they find difficulty in finding job because they have no work experience.
4. Majority of the respondents have not registered their names at Government employment office and so do
not receive any call from them consequently.
5. 49% of the respondents find it difficult to meet the special need of organizations like working with the new
technology and new trends in industry.
6. Majority of the respondents say that graduates secure job opportunities sometimes only & most of the
respondents said that the relationship between Maharashtra Government and unemployed graduates is fair.
7. Role played by the Government in encouraging unemployed graduates is poor according to majority of
respondents.
8. 45% of the respondents think that Maharashtra state has the most adequate infrastructure and manpower to
create jobs for the unemployed graduates.
9. Majority of respondents said that Maharashtra state Government do not have any account for creation of
jobs.
10. 45% of the respondents do not channelize any loans received for a particular purpose from the Government.
VIII. Hypothesis Testing:-
Questions
Chi-
Square
P-value P Value
Does college provide job opportunities? 0.47 0.492547 Significant
What would you say was the main obstacle in
finding job?
4.509 0.211511
Not
Significant
Have you registered your name at Govt.
employment office?
0.47 0.492547 Significant
Did you receive any call from Govt. employment
office?
0.539 0.462982
Not
Significant
Are graduates always easy to meet the special need
of organization?
1.024 0.598803
Not
Significant
How often do graduates secure job opportunities?
2.175 0.336919
Not
Significant
How would you rate the relationship between
Maharashtra Govt. and unemployed graduate?
0.539 0.669779
Not
Significant
How encouraging is the role played by the govt.
towards unemployed graduate particular in
Maharashtra?
5.322 0.097175
Not
Significant
IX. Result Of Hypothesis:-
1. The chi square statistic calculated value is less than the chi- square critical value. Hence, we accept the null
hypothesis that the current Educational system is not serving our societal need.
2. The chi square statistic calculated value is less than the chi- square critical value. Hence, we accept the null
hypothesis that there are no means for the graduates‟ unemployment to be eradicated.
3. The chi square statistic calculated value is less than the chi- square critical value in all cases. Hence, we
accept the null hypothesis that the government has not addressed itself to the problems of graduates‟
unemployment galore.
X. Conclusion:
It is very important for each student to identify his capabilities, his interest before taking up any course
because, it is better to think before, rather than roaming here and there for getting a job. The employability,
however, is a more serious problem and is a major challenge to the entire educational system and the content of
the curriculum as well as the emphasis on the theoretical as distinguished from practical applied training. Only
graduation degree is not sufficient to be employable. Understand certain job profile requires certain skills,
certification, and experience.
Educated youth is facing so many problems in finding jobs and in starting their job careers. The
situation is serious because majority of the fresh graduates are not accepted in job market because the demand of
experienced segments is high as compare to the fresh ones. On the other hand job opportunities are too low due
to the overpopulation and lake of resources, wages are also low hence the majority of the segments don‟t accept
low wages and long working hours but most of them are having problem to get job even on less pay.

XI. Suggestions:-
 The very first step we can do is to stop rising population in India. In old days when India was not highly
populated country almost everyone used to get job easily. But, today India cannot give employment to large
population. So the government has to take initiative to control population by motivating people for having
smaller families.
 Government should keep strict watch on these institutions and find new ways to create better labor force.
Colleges and Institutions should not just provide education and employment, make but should be
employable. Maximum syllabus should be practical. Syllabus should be updated and should fulfill current
industry trends.
 Government should create more agricultural based industries, so that rural candidates won‟t migrate to
urban areas. This won‟t put more pressure on urban jobs.
 Exporting more things will increase the production in India and will generate more employment.
Government should allow more foreign companies to open their units in India, so that more employment
opportunities will be available.
 There are various schemes launched by the Prime Minister of India like Mahatma Gandhi National Rural
Employment Guarantee Act (MGNREGA), MUDRA, job portals, Make in India which promotes
employment and students should make use of them.
 There are various recommendations proposed on the problem like controlling the population, improving the
quality of education at every level may it be primary, secondary or higher, selection of course and institute
where proper training encouragement from the government, more exports than imports.
 The educated youth should change their mind also and they should think of self-employment, rather than
searching jobs and services here and there wasting their energy. In this way very serious problem of
unemployment may be saved to a great extent.
Bibliography
Journal Papers:-
[1]. CHINEDU LOUIS OGBOO, Unemployment Problems Amongst Graduates of Higher Institutions (A Case Study of Enugu
Metropolis), Department Of Business Administration Faculty Of Management And Social Sciences Amorji – Nike, Enugu State,
2009.
Books
[2]. R. Ahuja, Social Problems in India (Rawat Publications, Second Edition).
[3]. C.R. Kothari, Research Methodology, Methods & Techniques (New Age International Publishers, Second Edition, 2004).
Chapters in Books
[4]. C.R. Kothari, Research Methodology, Methods & Techniques (New Age International Publishers, Second Edition,2004), 233-250.
Proceedings
[5]. Economic Survey of Maharashtra Directorate of economics and statistics, Planning department, Government of Maharashtra,
Mumbai, 2014-15.
Web links
[6]. https://www.quora.com/Higher-Education/What-causes-high-unemployment-rate-among-Indian-graduates
[7]. http://nptel.ac.in/courses/109103022/11
[8]. https://en.wikipedia.org/wiki/Graduate_unemployment
[9]. http://www.tradingeconomics.com/india/unemployment-rate
[10]. http://www.mapsofindia.com/my-india/society/top-five-programmes-launched-by-prime-minister-narendra-modi-in-2014
[11]. http://www.academia.edu/5579970/UNEMPLOYMENT_PROBLEMS_AMONGST_GRADUATES_OF_HIGHER_INSTITUTIO
NS
[12]. http://www.smh.com.au/world/indias-jobs-shortage-phds-graduates-among-23m-applicants-for-office-boy-positions-20150924-
gjuktu.html
[13]. http://www.beeblog.in/2015/01/general-solutions-for-unemployment-in.html
[14]. http://www.beeblog.in/2015/01/unemployment-at-different-levels.html

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Graduates Unemployment- A Case of Jalgaon City